Artificial intelligence: meeting the expectations of the insurance sector
Artificial intelligence (AI), where machines can effectively mimic the cognitive function of the human mind, is the driving force behind machine technology and deep learning. Simply put, AI is a set of digital tools that make machines smarter, allowing them to perform certain automated activities that would normally require human intelligence.
The insurance industry is a highly competitive industry. More than ever, more carriers and wholesalers are looking to secure new business and retain customers by deploying improved products and services to better meet changing market needs and deliver more value. But in a field of competition that is too saturated, how can one company gain the advantage over another?
AI and digital technologies present a strong case to help brokers, carriers and wholesalers gain a competitive advantage. Key capabilities include:
- Improve consumer focus. AI is used in tandem with humans to improve the customer experience by effectively combining digital automation with human intervention. For example, a wholesale broker may first receive a quote and underwriting information digitally, then follow up personally regarding specific coverage and pricing options with the retail producer. This allows the broker to present a proposal in an expedited, yet personal way.
- Deep learning. Using AI-powered customer data and applying it to a machine learning model allows an insurer to assess a customer’s risk profile. As a result, insurance companies can better understand their customers and orient new products and services according to the individual needs of the insured. For example, AI can identify a corporate client that is at work or cybersecurity risk, providing the opportunity to bring specific products to market where there is an immediate need.
- Identify target markets. AI’s ability to effectively capture and analyze consumer data enables carriers and wholesalers to deliver product and service recommendations specific to target markets, based on digital data including location, interests and online browsing history. By default, it can also present purchase options and additional recommendations.
- Smart customer service. To be competitive, businesses need to deliver the best possible customer experience. Today, AI can be a key resource for improving the insurance buying experience. For example, powered by AI, chatbots can provide instant responses to queries and, if necessary, route the query to another specific person / department. This type of intelligent call routing and conversational AI technology helps insurance companies respond faster, increasing satisfaction and retention.
It is estimated that by 2025, AI will have automated 25% of the insurance industry, with 50% to 60% of all manual tasks being automated. The AI solutions mentioned in this article, along with many others, make it easier for insurance professionals to focus on market opportunities that can help them gain a competitive advantage, while improving the insurance experience. purchasing customers.
Brad Nevins has over 35 years of P&C insurance marketing, premium financing and claims experience. For more information contact Brad at [email protected] or call (707) 759 5391
This article originally appeared on Direct Connect Advertising and Marketing blog and is reproduced here with permission.